Unitrin, Inc. reports it has worked out an agreement to sell its Unitrin Business Insurance unit to AmTrust Financial Services, Inc. in a cash transaction. Terms were not disclosed.
Unitrin had previously announced in September an agreement in principle for the sale. AmTrust will acquire the renewal rights to the UBI book of business and certain legal entities and selected other assets and personnel that Unitrin currently employs to write its UBI business. Unitrin will retain pre-closing loss and loss adjustment reserves.
The transaction is subject to approvals by insurance regulators and other customary closing conditions and is expected to close by the end of the first quarter of 2008.
Unitrin Business Insurance serves commercial customers in 30 states through a network of independent agents and had total premium revenues of approximately $165 million in 2006.
AmTrust, based in New York City, is a multinational specialty property and casualty holding company, which offers specialty property and casualty insurance products, including workers’ compensation, commercial automobile and general liability, extended service and warranty coverage.
AmTrust North America, through Rochdale and Technology Insurance Companies, offers mono-line workers’ compensation for small and mid-size businesses. AmTrust Underwriters Inc. specializes in risk funding arrangements to single entity and program business clients.
Unitrin is a $3 billion financial services company providing insurance and consumer finance products and services.
Among the brands in Unitrin’s Property and Casualty Insurance business are Kemper1, Unitrin Specialty and Unitrin Business Insurance, which sell personal and commercial insurance through networks of independent agents, and Unitrin Direct, which sells auto insurance directly to consumers.
Barry Zyskind, president and CEO of AmTrust, stated, “This acquisition offers us the opportunity to obtain and develop a book of business that fits our focus on small businesses and to complement and expand the products we offer to our existing small workers’ compensation and property and casualty customers.”
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